Canada’s Pot Tax Will Fund Education

November 14, 2017 Taxation in Canada

Marijuana TaxOTTAWA – Canada’s tax on legal marijuana will help stamp out the illegal drug trade, while also potentially raising funds for public education about the harm caused by drugs.

On November 13th a Minister of Parliament of Canada Bill Blair called for the tax revenues from the country’s upcoming legalization of marijuana to be used to fund public education about the drug.

Under the current plan for the legalization of marijuana, the federal government intends to levy a tax on the sale of marijuana, with a rate of 10 percent of the retail price of marijuana or CAD 1 per gram, whichever is higher.

It is believed that the tax could garner tax revenues of as much as CAD 1 billion per year.

The MP claims that the government has a responsibility now of ensuring that Canadians know and understand the risk of partaking in marijuana.

Currently, it is estimated that approximately 30 percent of Canadians aged between 20 and 24 use marijuana recreationally.

The government believes that the CAD 1 per gram tax rate is set with the aim of raising tax revenues, while also making legal marijuana competitive against illegal marijuana, with the view of helping stamp out the illegal trade of the drug.